Joint Venture with AG group
LS Cable will make a foray into the Indonesian cable market by establishing a production base in partnership with a local company.
LS Cable announced on June 18 that the company has signed a contract with ArthaGraha Network (AG Group) to set up the joint venture. A signing ceremony was held at the Embassy of Indonesia in Seoul on June 18.
LS Cable and the AG Group will start the construction of a power cable plant on a site near Jakarta this July by investing a total of US$40 million. The plant will be completed at the end of 2019.
This plant will produce processed wires for infrastructure and medium-low-voltage wires used for construction and plants. LG Cable is looking forward to posting about US$100 million in sales in 2025.
The AG Group is one of the top 10 Indonesian companies with the banking, hotel, construction and resort business among others. Synergies are expected out of a combination of LS Cable's global cable business capacities and AG Group's business experience in Indonesia.
With the establishment of the Indonesian production corporation, LS Cable will have a total of seven manufacturing subsidiaries including LS Cable Asia ranking first in the Vietnamese cable market in Asia including China, India and Myanmar.